Chinese Image in the Africa Oil and Gas Market

2016.02.22

Although Chinese President Xi Jinping's state visit to Egypt has ended for more than a month, Simon Xie’s wechat still gets many comments on his photo with President Xi. At this time, Simon’s business development in Africa is also going smoothly. Chinese companies are actively boosting operations in the Africa market with their ways.

Simon, interviewed by Phoenix TV

Jereh Cementing Unit Working in Nigeria

As the Deputy Secretary of China-Egypt Chamber of Commerce and East African market manager of Jereh Group, Simon takes part in the reception work during President Xi’s visit. Since he flies often in those leading oil-producing countries such as Egypt, Tanzania, Ethiopia and Kenya, he has already taken them as the second home. Regarding the impact on oil and gas industry brought by this high-level meeting, he is also particularly concerned.

"Africa, especially East Africa, has rich oil and gas resources. From the bottom of Nile River in South Sudan to Lake Albert in Uganda and Lake Turkana in Kenya, and south to Lake Malawi and Tanganyika, there is an oil and gas production area appeared with the axis of Great Rift Valley. The conservative reserves in the East Africa is at least 65 billion barrels, which is quite appealing for such oil and gas equipment and services companies as Jereh Group, "Simon said.

There are already many well-known Chinese enterprises that has their strong presence in the world market, such as Sinohydro, China State Construction, and Huawei. Likewise, Jereh in the oil and gas industry has become a world-leading drilling and completion equipment manufacturer, with main businesses covering oil and gas exploration, engineering services and environmental services. More than 50% completion equipment in China is provided by Jereh, and also it builds China's first shale gas LNG liquefaction plant.

"Except several large players of Shell, Total, Apache, the main operators in Africa are those small/medium firms. Facing the decline of oil prices, Chinese companies with high quality products or particular technology, like Jereh, has strong competitiveness in both cost and operation efficiency, “ said Simon, " in addition, the customized design and better after-sales services are another advantages. "

Chinese enterprises also value the positive impact on the local communities. In July 2015, China-Egypt Chamber of Commerce together with the China-Egypt Stone Association and local charities in Cairo provided free iftar and gift for low-income and the homeless during Ramadan. According to Simon Xie, more than 300 Egyptian enjoy this benefit every day.

The chairman of Egypt Charitable Society Mrs. Hanna thinks highly of this activity by Chinese brothers, and expresses pleasure to cooperate with Chinese enterprises in community charity work.

As Simon Xie said, with the China-Africa partnership entering a "honeymoon period", there will be more win-win cooperation in oil and gas.